RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/3/Rev.5 
14 September 2005 
 (05-4003) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
  
ACCESSION OF VIET NAM 
Domestic Support and Export Subsidies in the Agricultural Sector
 
Revision  
 
 The following submission, dated 7 September 2005, is being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam. 
_______________ 
  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 2 Supporting Table DS:1 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Measures exempt from the reduction commitment -- "Green Box" 
 
Monetary value of measure in year in question 
( VND billion) Measure type Name and description of measure with reference to criteria in Annex 2 of 
the Agreement on Agriculture 1999 2000 2001 Average  
1999-2001 Data sources 
1 2 3 4 5 6 = (3+4+5):3 7 
(a) General services       
(i) Research Budget expenditures for running Agricultural research system. 243.98 367.83 292.10 301.30 MOST; 
MARD; MOF; 
Prov 
(ii) Training services Expenditures to set up, maintain and develop agricultural training 
institutions and centres.  146.2 
 185.0 
 433.5 
 254.9 
 MARD; MOF; 
Prov  
(iii) Extension and 
advisory services Budget allocations to establish an d maintain a nationwide network of 
provision of agricultural extension and advisory services; improving 
quality of plant varieties/seeds, animal breeds.  163.01 1,499.85 1,590.61 1,089.49 MARD; Prov 
(iv) Infrastructure 
services Budgetary expenditures to construct, maintain and develop farm 
irrigation systems, water supply facilities and drainage works, etc. for 
agricultural sector. 5,491.10 6,787.14 4,863.00 5,713.75 GDS; MARD; 
Prov 
(v) Pest and disease 
control, inspection services Budgetary expenditures in activities related to plant and animal health 
protection; sanitary and phytosanitary  defence and alertness; pest and 
disease surveillance, prevention and co ntrol; provision of vaccines, etc. 247.76 277.25 264.02 263.01 MARD ; Prov 
(b) Public stockholding 
for food security 
purposes Budgetary expenditures in activities related to accumulation, storage and 
handling of products for food security purposes including rice (under the 
management responsibility of the State Reserve Department); some plant varieties/seeds such as  seeds of rice, maize, and vegetables; insecticides, 
veterinary medicines, vaccines,  etc. (under the management 
responsibility of MARD). 686.90 578.40 2,271.40 1,178.90 MARD; Prov 
(c) Domestic food aid  Budgetary outlays in activities related to food aid distribution to deprived 
people in remote, mountainous and other disadvantaged areas for hunger 
relief purpose. 92.50 85.44 197.07 125.00 MARD; Prov 
(d) Decoupled income 
support  0.00 0.00 0.00 0.00  
(e) Income insurance 
and income safety-
net programmes    0.00 0.00 0.00 0.00   
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 3Monetary value of measure in year in question 
( VND billion) Measure type Name and description of measure with reference to criteria in Annex 2 of 
the Agreement on Agriculture 1999 2000 2001 Average  
1999-2001 Data sources 
1 2 3 4 5 6 = (3+4+5):3 7 
(f) Payments for relief 
from natural 
disasters  Budgetary outlays related to provision basic necessities to farmers in 
areas hit by natural disasters to assi st them to stabilize their lives and 
recover production; relief in form of  electricity assistance payments to 
use pumps to irrigate drought-stricken land or to drain flooded land; relief in form of financial support (cash payments) to suffered farmers to 
purchase seeds, veterinary medicines, insecticides, etc. to continue with 
production. 901.20 2,192.07 1,434.36 1,509.21 MOF; Prov 
(g) Structural 
adjustment 
assistance provided 
through producer retirement 
programmes   0.00 0.00 0.00 0.00  
(h) Structural 
adjustment 
assistance provided 
through resource retirement 
programmes Support to move from the low efficient and unstable productive crops to 
aquaculture. 5.61 15.98 109.8 43.80 MARD 
(i) Structural 
adjustment assistance provided 
through investment 
aids Support to move from the low efficient and unstable productive crops to 
grow more efficien t industrial crops. 181.78 270.74 170.44 207.65 MARD 
(j) Environmental 
programmes  0.00 0.00 0.00 0.00  
(k) Regional assistance 
programmes Budget allocations for resettlement of ethnic minorities, establishment 
and development of new economic zones; Priority investments to 
develop 1,500 communes under harsh and especially disadvantaged conditions in remote and distant areas, etc.  800.7 1,124.0 3,063.0 1,662.6 
 MOF; SB; 
MARD  
 
(l) Other  0.00 0.00 0.00 0.00  
Total        8,960.7    13,383.7    13,945.0     12,096.5  
  
  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 4 Supporting Table DS:2 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Measures exempt from the reduction commitment -- Speci al and Differential Treatment -- "Development Programmes" 
 
Monetary value of measure in year in question 
(VND billion) Measure type Name and description of measure with reference to criteria in Article 6:2 
of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(a) Investment 
subsidies generally 
available to agriculture Interest rate support applicable to investment activities
2. 
  524.30 1,137.85 886.78 849.64 MARD; SB; 
MOF; Prov 
(b) Input subsidies 
generally available 
to low-income or resource-poor 
producers Short-term soft loans
3. 
Budget allocations for freight subsidies to offset the high cost of 
transportation of policy commodities and production inputs to mountainous, remote regions, etc.  1,037.05  1,463.97 925.8 1,142.27 SB; MARD; 
Prov 
 
(c) Support to 
encourage diversification from 
growing illicit 
narcotic crops Provision of support in the form of plant varieties/seeds, seeds, breeds; 
dissemination of farming techniques; administrative costs to assist the diversification from illicit opium poppy cultivation to other crop 
production. 
 9.60 11.10 1.47 7.39 MARD; Prov 
Total  1,570.95 2,612.92 1,814.05 1,999.3  
 
 
                                                      
 2 The Government compensates commercial banks for the difference between prevailing market interest rate and preferential interes t rate charged by commercial banks for mid-term or 
long-term investment loans applicable for projects to establish and develop processing premises for agricultural products  and  projects of growing perennial plan ts under the Government's direction.   
    3 The State establishes a banking network for the poor in order to a llow the poor to have access to short-term loans at preferent ial interest rate  equivalent 50 per cent of the prevailing 
commercial market interest rate  to develop their own production.  
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 5Supporting Table DS:3 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2000 
Measures exempt from the re duction commitment -- Direct Payments under Producti on-Limiting Programmes --"Exempt Direct Payments  
 
Monetary value of measure in year in question  
 (VND billion) Measure type Name and description of measure with reference to criteria 
in Article 6:2 of the Agreement on Agriculture 1999 2000 2001 Data sources 
1 2 3 4 5 6 
NIL 
  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 6 Supporting Table DS:4 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Calculation of the Total Aggregate Measurement of Support (Total AMS) 
 
Description 
of basic 
products Product-specific AMS  (from Supporting Tables DS:5 to 
DS:7) (VND billion) Product-specific AMS  
(from Supporting Tables 
DS:8 below) Current Total AMS (aggregate) 
(VND billion) 
 1999 2000 2001 Average  1999 2000 2001 Average 
1 2 3 4 5 6 7 8 9 10 
(1) Rice 27.20 
 (de minimis ) 61.94 
 (de minimis ) 0.00 29.71 
(de minimis ) Nil 0.00 0.00 0.00 0.00 
(2) Sugar 3,379.1 3,504.73 1,966.95 2,950.26 Nil 3,379.1 3,504.73 1,966.95 2,950.26 
(3) Cotton 2.00 
 (de minimis ) 9.57 
 (de minimis ) 13.35 
 (de minimis ) 8.31 
(de minimis ) Nil 0.00 0.00 0.00 0.00 
(4) Pork 3.20 
(de minimis) 0.00 0.00 1.07 
(de minimis) Nil 0.00 0.00 0.00 0.00 
Non-product-specific AMS (from Supporting Table DS:9 below)  
 1,111.82 
(de minimis ) 1,152.72 
(de minimis ) 1,300.82 
(de minimis ) 1,188.45 
(de minimis ) Nil 0.00 0.00 0.00 0.00 
 
Total AMS      0.00 0.00 0.00 0.00 
 
De minimis (10% of production value) in:  1999  2000  2001  
  Rice 7,687.00 6,369.10 6,308.81 
 Sugar 6,956.00 6,102.70 6,831.30 
 Cotton 12.21 10.34 15.01  Pork 1,664.12 1,747.2 1,747.2 
 
  
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 7Supporting Table DS:5 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Aggregate Measuremen ts of Support: Market Price Support 
 
  
                                                      
 4  Price support was not applicable in 2001.   Average export price of rice (FOB Ho Chi Minh port) in 1999: US$ 251.6/ton, in 2000 : US$ 224.1/ton, in 2001: US$ 186.2 /ton. 
  All data for rice in the table are based on a milled rice.    
 5 Mandatory requirement by the Government on sugar plants to purchase farmers' sugarcanes  at determined prot ective price (minimum  purchase price) to protect farmers' income (e.g. the 
minimum purchase price of sugarcane was dete rmined at 240,000 Dong per ton in 1999).   As a consequence, dom estic price of suga r is higher than world price.  
  - Eligible production for sugar equals to th e total production of all domestic sugar plants. 
  - Average import price of sugar (CIF Vietnam's port) in 1999:  US$ 162/ton, in 2000: US$ 220/ton, in 2001: US$ 262.3/ton.  (So urce: General Depar tment of Customs.)  
 6 Cotton plants are required by the Government to purchase the w hole quantity of raw cotton produced  by farmers at a minimum dete rmined price to protect farmers' income. As a result, 
cotton plants sometimes suffer from losses due to the sharp drop of cotton price in the world mark et that significantly influen ce on the price of domestically pr oduced cotton (textiles plants would 
only purchase cotton supplied by th e domestic cotton plants at resp ective low price). The Governme nt provides financial payment s to assist the cotton plants to cover these losses. 
  The average price of imported cotton ( CIF Vietnam’s port):  In  1999: 1,233 US$/T; in 2000: 1,214 US$/T; in 2001: 1,160 US$/T .  (Source: The General De partment of  Customs.) 
  Description of 
basic products Calendar 
year Measure type(s) Applied administered 
price (1,000 
Dong/ton) External reference 
price 
(1,000 Dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies 
(VND billion) Total market price 
support (VND 
billion) Data 
sources 
1 2 3 4 5 6 7 8 = ((4-5)*6)-7  
1999 3,166.00 3,508.97 20,406.00 0.00 0.00 
2000 Price support  
2,990.00 3,170.87 21,160.10 0.00 0.00 
2001 None 0.00 2,758.47 0.00 0.00 0.00 (1) Rice4 
Average 
1999-2001      0.00 
1999 5,819.00 2,259.00 947.30 0.00 3,372.4 
2000 5,687.00 3,112.00 1,208.70 0.00 3,112.4 
2001 Price support 
5,555.00 3,886.00 1,057.80 0.00 1,765.5 (2) Sugar5 
Average 
1999-2001      2,750.1 MARD 
1999 17,417 17,193 5.9 0.00 1.32 
2000 18,252 17,173 6.6 0.00 7.17 
      
2001 18,202 17,185 9.9 0.00 10.06 (3) Cotton6 
Average 
1999-2001 Price support 
17,957 17,170 7.5 0.00 6.18 MARD  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 8 Supporting Table DS:6 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Aggregate Me asurements of Support: Non-Exempt Direct Payments 
 
Description 
of basic 
product Calendar 
year Measure 
type(s) Applied administered price 
(1,000 Dong/ton) External reference 
price 
(1,000 Dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies 
(VND billion) Total direct 
payments 
(VND 
billion) Data sources 
1 2 3 4 5 6 7 8 =  
((4-5)*6)-7 9 
NIL 
  
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 9Supporting Table DS:7 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Aggregate Measuremen ts of Support: Other Product-Specific  Support and Total Prod uct-Specific AMS 
 
Description of 
basic product Calendar 
year Measure type(s) Other product-
specific 
budgetary 
outlays (VND 
billion) Other 
product 
specific 
support 
(VND 
billion) Associated 
fees/levies Total other 
product-specific 
support 
(VND billion) Market price 
support 
(Supporting 
Table DS:5) 
(VND billion) Non-exempt 
direct payments 
(Supporting 
Table DS:6) 
(VND billion) Total product 
- specific 
AMS Data 
sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
1999 27.20   27.20 0.00  27.20 MOF 
2000 Interest rate 
support to 
purchase rice 
during harvest 
time 61.94 
   61.94 0.00  61.94 
  
2001 None 0.00   0.00 0.00 Nil 0.00  (1) Rice7 
 
 
Average 
1999-2001       
  29.71  
1999 Support to import 
new varieties of 
sugarcane 6.70   6.70 3,372.4  3,379.1 
 (2) Sugar 
2000 -Interest rate  
support for 
investment loan 
and purchase 
sugar. 
-Finance working 
capital. 
 392.33   392.33 3,112.4  3,504.73 MARD 
                                                      
 7 The Eligible amount of rice was 500,000 MT in 1999 and 1,400,000 MT in 2000. 
  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 10 Description of 
basic product Calendar 
year Measure type(s) Other product-
specific 
budgetary 
outlays (VND 
billion) Other 
product 
specific 
support 
(VND 
billion) Associated 
fees/levies Total other 
product-specific 
support 
(VND billion) Market price 
support 
(Supporting 
Table DS:5) 
(VND billion) Non-exempt 
direct payments 
(Supporting 
Table DS:6) 
(VND billion) Total product 
- specific 
AMS Data 
sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
2001 - Interest rate 
support to develop 
the areas of 
sugarcane 
growing. 
- Support to cover 
losses caused by 
local currency 
devaluation.  
- Interest rate 
support for 
investment loan. 201.45   201.45 1,765.5  1,966.95   
Average  200.16   200.16 2,750.1  2,950.16  
1999 0.68   0.68 1.32  2.00  
2000 2.40   2.40 7.17  9.57  
2001 - Support to lower 
the selling price of 
imported cross- 
line cotton seeds  3.29   3.29 10.06  13.35  (2) Cotton8 
 
Average 
1999-2001   
2.13    
2.13  
6.18   
8.31  
1999 3.20   3.20 0.00  3.20 
2000 0.00   0.00 0.00  0.00 MARD 
2001 Interest rate 
support to 
purchase pork 0.00   0.00 0.00  0.00  (4) Pork9 
Average 
1999-2001  1.07      1.07  
 
                                                      
 8 The Government provides financial support to lower the selling price of imported cross-  line cotton seeds with a view to reduce  the production cost of cotton farmers who could otherwise 
hardly afford to purchase these high-yielding varieties/s eeds to for cultivation due to their high import price.   
  9 The Government provides interest rate support to enable trading enterprises to purchase pork  when  the domestic market prices d rop sharply causing losses to farmers. 
  
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 11Supporting Table DS:8 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Equivalent Measurements of Support 
 
Description 
of basic 
product Calendar 
year Measure 
type(s) Applied 
administere
d price 
(1,000 
Dong/ton) Production 
eligible to 
receive the 
applied 
administere
d price 
(1,000 tons) Market 
price 
support 
budgetary 
outlays 
(VND 
billion) Equivalent 
measureme
nt of 
support 
(EMS) 
(VND 
billion) Non-
exempt 
direct 
payments 
(VND 
billion) Other 
product-
specific 
support 
(VND 
billion) Associated 
fees/levies 
(VND 
billion) Total 
monetary 
value of 
equivalent 
commitment 
(VND 
billion) Data 
sources 
1 2 3 4 5 6 7 8 9 10 11=  
(7+8+9-10) 12 
 
NIL 
 
  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 12 Supporting Table DS:9 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Non-Product-Specific AMS 
 
Measure type(s) Calendar 
year Non-product-specific  
budgetary outlays 
(VND billion) Other non-product-specific 
support 
(VND billion) Associated 
fees/levies Total non-product-specific 
support (VND billion) Data sources 
1 2 3 4 5 6 = (3+4-5) 7 
1999 101.82   101.82 MARD 
2000 147.72   147.72  
2001 301.82   301.82  Support to cover 
losses for 
electricity used in 
irrigation10 Average 
1999-2001    183.79  
1999 1,010.00   1,010.00  
2000 1,005.00   1,005.00  
2001 999.00   999.00  Support   
irrigation fee11 
Average 
1999-2001    1,004.67 
  
1999    1,111.82  
2000    1,152.72  
2001    1300.82  Total 
Average 
1999-2001    1,188.46  
  
                                                      
 10 The Government has charged at the average of 572.72 Dong/kwh for electricity used in water pumpi ng, irrigation in comparison wi th the average of 700 Dong/kwh for other sectors. 
The difference will be covered by the Government. The electric ity consumption in agriculture is 800 million kwh per annual. 
 11 Under Decree No.112 of the Government date d 25 August 1984, basic amortiza tion, considerable repairme nt of irrigation works and  machinery (estimated round 3,300 billion Dong per 
annual) are not calculated and c onsidered subsidies for agricultu re. According to this provision , irrigation fee should be VND 1,500 billion per annual. In fact, due to farmers’ difficulties, the total 
received in 1999 was VND 490 billion, 2000:  VND 495 billion and 2001: VND 501 billion. The Governme nt has covered unpaid fee a ccording to the Prime Minister’s Decision No. 1116/QD/Ttg 
dated 22 August 2001.  
  
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 13Supporting Table ES:1 
EXPORT SUBSIDIES: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Export Subsidies: Outlay and Quantity 
 
Total product specific export subsidies 
(VND billion) Quantity of subsidized exports 
(1,000 tons) Description of 
products12 Direct 
export 
subsidies Sales of 
stocks 
(VND 
billion) Producer 
financed 
subsidies 
(VND 
billion) Cost 
reduction 
measures 
(VND 
billion) Internal 
transport 
subsidies 
(VND 
billion) 1999 2000 2001 Average 
1999-
2001 1999 2000 2001 Average 
1999-
2001 Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
(1) Rice 
 (HS 1006 30)      486.00 600.00 822.77 636.26 1,900 2,500 3,730 2,710 MARD 
(2) Pork(2) 
 (02031100;   02031200; 
 02031900; 
 02032100;  02032200; 
 02032900)      49.70 31.30 31.48 37.49 7.10 9.50 20.00 12.20 MOF;  
(3) Coffee 
 (HS 0901 11)      203.00 348.60 536.35 362.65 50 198.7 932 393.57 MARD 
(4) Canned 
Vegetables and 
fruits 
(in chapter 20)  
 
     12.00 9.90 165.00 62.30 15 12.00 N/a 9.00 MOF;  
Total      750.70 989.80 1,555.61 1,098.5      
 
Notes : Legal documentation: 
 
                                                      
12 The Vietnamese Government pr ovided financial support to:  
1. Rice:  Provision of interest rate s upport for rice export enterprises.  Support to  cover losses of rice export from temporar y storage.  Export bonus: 180 VND/US$ (equivalent 1.2%). 
2. Pork:  Support to cover losses of pork export to Russia and Hong Kong.  Provision of short- term interest rate support.  Exp ort bonus: Suckling pig: 280 VND/US $ (equivalent 1.87%).  Pork: 
900/US$ (equivalent 6%). 
3. Coffee:  Provision of interest rate s upport to assist export enterprises to purchas e coffee for temporary storage.  Refund o f export surcharges.  Support to cover losses of exporting coffee from 
temporary storage.  Export bonus : 220 VND/US$ (equivalent 1.46%). 
4. Canned Vegetables and fruits:  Support to export canned pineapples and canned cucumbers to Russian and US.  Export bonus: 40 0 - 500 VND/US$ (equivalent  2.6 - 3.3 %). 
(*)  Products which are eligible for export bonus has not been described based on packag ing criteria in the Vietnamese Harmoniz ed commodity description and coding System.   
 
  
 WT/ACC/SPEC/VNM/3/Rev.5 
Page 14 1. Prime Minister's Decision No.250/1998/QD-TTg of 24/12/1998; 
 Government Official Document No.275/CP-KTTH of 18/3/1999  No.1039/CP-KTTH of 30/9/1999;  
 Prime Minister's Decision No.35/2000/QD-TTg of 21/3/2000;  Prime Minister's Decision No.223/2001/QD-TTg of 06/03/2001. 
 
2. Prime Minister's Decision No.933/1999/QD-TTg of 28/10/1999 and No.540/2000/QD-TTg.  
3. Government Official Document No.30/CP-KTTH of 11/1/2001; 
 Prime Minister's Decision No.140/2001/QD-TTg of 13/2/2001;  Decision No.65/2001/QD-BTC of 29/06/2001 of MOF. 
 
4. Government Official Document No.977/CP-KTTH of  13/9/1999;  Decision No.65/2001/QD-BTC of 29/06/2001 of MOF.  
  WT/ACC/SPEC/VNM/3/Rev.5
 Page 15ANNEX 
 1. Official exchange rate: 
  This exchange rate used in calculation of all programmes of domestic support and export subsidies. 
 Currency unit: VND (Vietnamese Dong):     1999: US$ 1 = VND 13,944 
   2000: US$ 1 = VND 14,146  
   2001: US$ 1 = VND 14,815   Data sources: General Department of Statistic. 
 
2. Explanation of abbreviations for relevant agencies: 
 
GDS: General Department of Statistics 
MARD: Ministry of Agriculture and Rural Development 
MOF: Ministry of Finance 
MOST: Ministry of Science and Technology  
MPI: Ministry of Planning and Investment 
SB: State Bank 
Prov: Provinces 
 
__________